North Carolina Down Payment Support Programs

Online Payments - These systems will be the Down Payment Assistance System along with the Mortgage Credit Certificate.

Also you purchase a home between December 1, 2009 and January 1, 2009 and should you meet the requirements for one of these programs, you might also qualify for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home within the past three years. This is the exact same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and moderate incomes. All home owners can claim an itemized deduction. The MCC takes this a step further. An MCC “reduces your tax liability depending on a share of the mortgage interest which you pay.

You are able to claim 20% of the interest you pay on your own mortgage as a credit on your own federal income taxes, should you are eligible for the MCC. It is possible to save as much as .

If you do qualify for 2009, for the MCC, you'll manage to unite this with the $8,000 tax credit. This may reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any man anticipated to live in the residence who is 18 years old or older.”

The income and house price limitations that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limitations 1 Individual $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New Dwelling $220,000 Existing Residence $210,000

The purchaser only has to pay and the load would pay around .

This plan has more rigorous income limits than the MCC program outlined above. Like the MCC program, it can be used along with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit assistance, nonetheless, can not be used along with the MCC. It is an either or scenario.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Individuals $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Support Sales Cost Limits New House $210,000 Existing House $210,000